Question

Suppose that an item regularly costs $100.00 and is discounted 18%. If it is then marked up 18%, is the resulting price $100.00? If not, what is it?

Answer 1

If the product cost $100 and it has a discount of 18%. The final price is

`100(1-(18)/(100))=100(1-0.18)=100(0.82)=82`

that is, It will cost $82.

If the product is mark up 18%, this means that

`\begin{gathered} \text{new price= original price +markup} \\ \text{new price=82+82(18\%)} \\ \text{new price=82}+82(0.18) \\ \text{new price=82+14.76} \\ \text{new price=}96.76 \end{gathered}`

That is, the resulting price is $96.76, which is not equal to $100.